Does a Central Clearing Counterparty Reduce Counterparty Risk?

Duffie, D., & Zhu, H. (2011). Does a Central Clearing Counterparty Reduce Counterparty Risk?. Review of Asset Pricing Studies, 1(1), 74-95.

Type

Journal article

Intellectual base

Review or monograph

Year

2011

Volume

1

Issue

1

Pages

74-95

DOI

10.1093/rapstu/rar001

DOI registrant

Oxford University Press

Link

https://doi.org/10.1093/rapstu/raq003

Cited from

economics_finance, environmental_climate

Cited by

2 citations across 2 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

• Exposure Pathway
  • In financial risk a credit event travels through counterparty graphs to a final loss, with central counterparties and netting breaking links.

    This sourceAnalyzes how central counterparties and netting reshape counterparty-credit exposure as it travels through the dealer counterparty graph — the financial-risk instance of link-breaks on a contagion route from a credit event to a final loss.

• Risk Transfer
  • Counterparty-solvency rules transfer to derivatives clearing: capital and reserve requirements in insurance carry directly to central-counterparty clearing and to collateral requirements in repo markets, all guaranteeing the counterparty can pay when the trigger fires.

    This sourceAnalyzes central-counterparty clearing and collateral as counterparty-solvency guarantees for derivatives.

Verification

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Links previously used in the corpus

Before the registry existed this work was also linked 1 other way.

• https://doi.org/10.1093/rapstu/rar001 ×1

Registry ID ref:b7b79f3baa9c · see in the full table